Method and apparatus for managing subscriptions

ABSTRACT

A subscription system allows a customer to establish a subscription to a product with one or more retailers (e.g., by establishing the subscription through a controller or central system). In one embodiment, a subscription may be established after receiving information that identifies a product. Terms of a subscription for the product are established, such as a frequency and a duration of the subscription.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.12/611,365 filed Nov. 3, 2009, entitled METHOD AND APPARATUS FORMANAGING SUBSCRIPTIONS, the entirety of which is incorporated herein byreference for all purposes.

U.S. patent application Ser. No. 12/611,365 is a continuation of U.S.patent application Ser. No. 11/768,594 filed Jun. 26, 2007 and issued asU.S. Pat. No. 7,613,631 on Nov. 3, 2009, the entirety of which isincorporated herein by reference for all purposes.

U.S. patent application Ser. No. 11/768,594 is a divisional of U.S.patent application Ser. No. 09/538,805 filed Mar. 30, 2000 and issued asU.S. Pat. No. 7,251,617 on Jul. 31, 2007, the entirety of which isincorporated herein by reference for all purposes.

U.S. patent application Ser. No. 09/538,805 claims the benefit ofpriority of U.S. Provisional Application No. 60/165,366 filed Nov. 12,1999, entitled SUBSCRIPTION GROCERIES, the entirety of which isincorporated herein by reference for all purposes.

U.S. patent application Ser. No. 09/538,805 is a continuation-in-part ofU.S. patent application Ser. No. 09/221,457 filed Dec. 28, 1998 andissued as U.S. Pat. No. 6,415,262 on Jul. 2, 2002, entitled METHOD ANDAPPARATUS FOR DETERMINING A SUBSCRIPTION TO A PRODUCT IN A RETAILENVIRONMENT, the entirety of which is incorporated by reference hereinfor all purposes.

This application is related to the following U.S. patent applications:

U.S. patent application Ser. No. 10/642,894 filed Aug. 18, 2003 and nowabandoned entitled METHOD AND APPARATUS FOR IDENTIFYING POTENTIALBUYERS;

U.S. patent application Ser. No. 10/124,809 filed Apr. 17, 2002 and nowabandoned entitled METHOD AND APPARATUS FOR FACILITATING PURCHASEAGREEMENTS WITH A RETAILER;

U.S. patent application Ser. No. 09/540,709 filed Mar. 31, 2000 and nowabandoned entitled SYSTEM TO ESTABLISH A CUSTOMER-SPECIFIED PRICE OF APRODUCT AND TO MANAGE REDEMPTION OF THE PRODUCT AT THE ESTABLISHEDPRICE;

U.S. patent application Ser. No. 09/349,860 filed Jul. 8, 1999 and nowabandoned entitled METHOD AND APPARATUS FOR IDENTIFYING POTENTIALBUYERS;

U.S. patent application Ser. No. 09/340,953 filed Jun. 28, 1999 and nowabandoned entitled SYSTEM AND METHOD FOR ESTABLISHING AND MANAGINGSUBSCRIPTION PURCHASE AGREEMENTS INCLUDING COMMITMENTS TO PURCHASE GOODSOVER TIME AT AGREED UPON PRICES; and

U.S. patent application Ser. No. 08/889,589 filed Jul. 8, 1997 andissued as U.S. Pat. No. 5,970,470 on Oct. 19, 1999, entitled SYSTEM ANDMETHOD FOR ESTABLISHING AND MANAGING SUBSCRIPTION PURCHASE AGREEMENTSINCLUDING COMMITMENTS TO PURCHASE GOODS OVER TIME AT AGREED UPON PRICES,the entirety of which is incorporated by reference herein for allpurposes.

FIELD OF THE INVENTION

The present invention relates to sales methods and apparatus. Moreparticularly, embodiments of the present invention relate tosubscription sales techniques.

BACKGROUND OF THE INVENTION

Retail competition is intense. Single-store merchants compete withchain-stores. Chain-stores compete with bulk purchasing or warehouseclubs. And, more recently, brick-and-mortar retailers compete withInternet retailers. Chain-stores, bulk purchasing clubs, warehouseclubs, and Internet retailers (generally referred to herein as“discounters”) generally attempt to increase their revenues byattracting a greater volume of customers and increasing sales.Competition for customers has had a dramatic impact on traditionalretailers. For example, while the grocery industry has enjoyed anincreasing market size, the market share of conventional supermarketsand groceries has dwindled below their once-controlling interest. Inlarge part, this drop in market share has been caused by competitionfrom discounters such as bulk purchasing clubs.

Retail discounters have identified and are exploiting a lucrativeportion of the retail market—customers who are willing to make bulkpurchases in exchange for discount prices. Such bulk sales have cutdirectly into the volume of conventional retailers.

With market share steadily eroding, it has become necessary forconventional retailers to attempt to stem the loss of customers todiscount retailers. Due to the fundamental differences in theirbusinesses, however, it is difficult for a conventional retailer tocompete with a discount retailer. Further, it is becoming increasinglydifficult for discount retailers to compete with each other.

Discount retailers represent a very specialized portion of the retailmarket. Discount retailers generally locate their facilities in lessexpensive areas—often occupying warehouse type facilities—while stillattracting customers looking for a good deal. They are able to stock avery limited number of types of products because their customers arewilling to sacrifice choice for price. As a result, discount retailersare able to sell larger quantities of product per transaction, therebyrealizing lower per-sale costs.

Customers generally accept that discount retailers will not offer all ofthe amenities often provided by conventional retailers. For example,discounters typically do not provide check-cashing services, or bagitems at checkout. Further, many discounters operate as “clubs” andenroll customers, as “members” of the club. Customers often are requiredto pay a membership fee for the right to belong to the “club.” Such feeshelp offset what are traditionally thin margins.

In contrast, conventional retailers typically locate their facilities inareas convenient for their customers, thus often realizing higher realestate costs. They must stock a much larger number of products toattract customers, and they have relatively higher transaction costs dueto the typically large quantity of small items per purchase. To competein their core business, conventional retailers are expected to providesignificant customer amenities, without the imposition of any type ofservice or membership fee.

In addition, conventional retailers typically do not have the physicalinfrastructure necessary to compete in a traditional bulk sellingenvironment. Because they are located in more expensive facilities, theyoften have less floor and shelf space, with all available space beingused by the large number of products they stock.

In one attempt to compete with discounters, many retailers haveimplemented frequent shopper programs. In a typical frequent shopperprogram, a customer is provided with an identification card that ispresented at each visit. Records are typically kept of customerpurchases, and various discounts and benefits are typically provided tothe customer in return for registration and subsequent use of the card.

Frequent shopper programs, however, suffer from relatively limitedacceptance by customers. These programs are typically not able toprovide prices that are competitive with bulk purchasing programs.Often, discounts are only provided on a few items. Overall, frequentshopper programs do not provide a realistic alternative to customersinterested in bulk purchasing. In fact, no systems or methods are knownto applicants which permit conventional retailers to compete effectivelyagainst discounters.

One method which has been proposed by the assignee of the presentinvention to allow conventional retailers to compete with discounters isto allow customers to purchase subscriptions to products sold atconventional retailers. This is described in U.S. Pat. No. 5,970,470entitled SYSTEM AND METHOD FOR ESTABLISHING AND MANAGING SUBSCRIPTIONPURCHASE AGREEMENTS INCLUDING COMMITMENTS TO PURCHASE GOODS OVER TIME ATAGREED UPON PRICES, issued to the assignee of the present invention onOct. 19, 1999, and which is incorporated herein by reference for allpurposes.

It would be further desirable to provide a system which allows acustomer to establish a subscription to products which are sold at morethan one retailer. Preferably, subscriptions to a number of productsoffered by a number of retailers may be organized by a single entity,providing a customer with a greater sense of control and ability toselect and customize subscriptions to a large number of products. Itwould also be desirable to provide a system which allows retailers tooffer subscriptions to a large pool of customers who would otherwisenever have heard of the retailer or who would not have known about thesubscriptions offered by the retailer. It would be advantageous toprovide a method and apparatus that overcame the drawbacks of the priorart.

SUMMARY OF THE INVENTION

Embodiments of the present invention provide a system and method formanaging subscriptions to products. Embodiments of the present inventionalleviate problems inherent in the prior art and promote commerce.

According to embodiments of the present invention, a customer mayestablish a subscription to a product with any of a number of retailersby establishing the subscription through a centralized system. In oneembodiment, a subscription is established by first receiving informationidentifying a customer and a product. At least one retailer that offersthe product is then identified, and terms of a subscription for theproduct are established. The established subscription is identified by aredemption identifier that is communicated to the customer. The customeris then able to redeem subscription products at the retailer byidentifying the subscription using the redemption identifier.

Embodiments of the present invention further include a system and methodfor tracking fulfillment of the subscription. Tracking fulfillment maybe performed by the centralized system, by the retailer, by thecustomer, and/or a combination of different parties.

Embodiments of the present invention also include a system and methodfor facilitating monetary settlement between parties.

With these and other advantages and features of the invention that willbecome hereinafter apparent, the nature of the invention may be moreclearly understood by reference to the following detailed description ofthe invention, the appended claims and to the several drawings attachedherein.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of a system consistent with the presentinvention;

FIG. 2 is a block diagram of one embodiment of the controller depictedin FIG. 1;

FIG. 3 is a table illustrating an exemplary data structure of a productdatabase for use in the present invention;

FIG. 4 is a table illustrating an exemplary data structure of a customerdatabase for use in the present invention;

FIG. 5 is a table illustrating an exemplary data structure of anavailable subscription database for use in the present invention;

FIG. 6 is a table illustrating an exemplary data structure of an activesubscription database for use in the present invention;

FIG. 7 is a table illustrating an exemplary data structure of asettlement database for use in the present invention;

FIG. 8 is a table illustrating an exemplary data structure of a subsidydatabase for use in the present invention;

FIG. 9 is a table illustrating an exemplary data structure of a penaltydatabase for use in the present invention;

FIG. 10 is a table illustrating an exemplary data structure of amodification database for use in the present invention;

FIG. 11 is a flow diagram illustrating an exemplary subscription processaccording to an embodiment of the present invention;

FIG. 12 is a flow diagram illustrating an exemplary process forestablishing a subscription according to an embodiment of the presentinvention;

FIG. 13 is a flow diagram illustrating an exemplary process for thefulfillment of a subscription according to an embodiment of the presentinvention; and

FIG. 14 is a flow diagram illustrating an exemplary process forperforming settlement according to an embodiment of the presentinvention.

DETAILED DESCRIPTION OF THE INVENTION

Applicants have recognized that a need exists for a system and methodthat allows customers to establish subscriptions to products that may beredeemed at a number of different retailers. In addition, Applicantshave recognized that a need exists for an ability to track thefulfillment and perform settlement functions to manage thosesubscriptions. Customers, retailers, and product manufacturers allbenefit from embodiments of the present invention which allow customersto establish subscriptions to products from a wide variety of retailers.

For example, retailers benefit through an ability to reach a larger poolof potential customers and by accessing information about eachcustomer's buying behavior and information about other subscriptionsheld by each customer. Retailers will reap further benefits from anability to better predict product demand. Both traditional retailers anddiscounters benefit from this ability to offer subscriptions tocustomers. Manufacturers benefit from an ability to directly offerdiscounts and other incentives to customers and through an ability tomold customer behavior and establish long-term customer loyalty.Customers benefit through increased cost savings and an ability tocustomize subscriptions to the customers' particular needs. Embodimentsof the present invention also give customers the ability to shop for andnegotiate subscriptions which best meet their needs for multiple typesof products at a single location across different types of retailers(e.g., hardware stores, clothing stores, supermarkets, etc.).

For consistency and simplicity of reference throughout thespecification, Applicants will use the following terms throughout thespecification. “Retailer” is used to refer to any vendor of items,goods, or services. “Product” is used to refer to any item, good, orservice. Other terms will be introduced throughout the specification.Further, a number of price terms will be used. The term “retail price”will be used to refer to a price per unit of a product which isestablished, e.g., by a manufacturer or retailer. The retail pricegenerally refers to the price a customer would typically pay for theproduct before any discounts or without use of embodiments of thepresent invention. The term “subscription price” is generally usedherein to refer to the price established, using techniques of thepresent invention, per unit of a product in a subscription. Thesubscription price may be preestablished (e.g., established in theavailable subscription database 500 of FIG. 5) or it may be establishedthrough negotiation or otherwise specified by the customer (e.g.,established in the active subscription database 600 of FIG. 6). The term“total subscription price” is used to refer to the sum total of thesubscription prices paid during the term of a subscription. Finally, theterm “settlement price” is used to refer to the amount which one party(e.g., a manufacturer, retailer, or an entity operating a controller 200of FIG. 1) agrees to pay to another party (e.g., a manufacturer,retailer, or an entity operating the controller 200 of FIG. 1) inconsideration for processing a subscription according to the presentinvention. These terms will be discussed in further detail below.

System

Referring now to FIG. 1, an apparatus 100 according to an embodiment ofthe present invention includes a controller 200 that is in communicationwith one or more customer devices 110, 120 and 130, and with one or moreretailer devices 140, 150 and 160. The controller 200 may communicatewith the customer devices 110, 120 and 130 and the retailer devices 140,150 and 160 directly or via a network such as the Internet. Each of thecustomer devices 110, 120 and 130, and the retailer devices 140, 150 and160 may comprise computers, such as those based on the INTEL® Pentium®processor, that are adapted to communicate with the controller 200. Anyor all of the customer devices 110, 120 and 130 and the retailer devices140, 150 and 160 may be, e.g., conventional personal computers, kiosks,portable types of computers, such as a laptop computer, a palm-topcomputer, a hand-held computer, a telephone, a cellular telephone, or aPersonal Digital Assistant (PDA). Further, any or all of the retailerdevices 140, 150, and 160 may be point of sale terminals or otherdevices operating at retailer points of sale. Any number of customerdevices and retailer devices may be in communication with the controller200.

The controller 200 may be operated by or on behalf of a service provideror other entity offering the service of providing and managingsubscriptions. The controller 200 may also be operated by or on behalfof an entity such as a financial institution, financial authorizationnetwork or other entity that receives and processes financialtransactions from multiple retailers. Further, the controller 200 may beoperated by or on behalf of one or more product manufacturers and/orretailers. The term “controller 200” will be used herein to convenientlyrefer to both the device (e.g., the device depicted in FIG. 2) as wellas the operation of the controller 200 by an entity or entities (e.g., aservice provider or other party).

Communication between the customer devices 110, 120 and 130, and theretailer devices 140, 150, and 160 and the controller 200 may be director indirect, such as over the Internet through a Web site maintained bythe controller 200 on a remote server or over an on-line data networkincluding commercial on-line service providers, bulletin board systemsand the like. In yet other embodiments, the devices may communicate withthe controller 200 over radio frequency (RF), cable television (TV),satellite links and the like.

Those skilled in the art will understand that devices in communicationwith each other need not be continually transmitting to each other. Onthe contrary, such devices need only transmit to each other asnecessary, and may actually refrain from exchanging data most of thetime. For example, a device in communication with another device via theInternet may not transmit data to the other device for weeks at a time.

The controller 200 may function as, or in conjunction with, a “Webserver” that generates Web pages (documents on the Web that typicallyinclude an HTML file and associated graphics and script files) that maybe accessed via the Web and allows communication with the controller 200in a manner known in the art.

Devices

FIG. 2 illustrates an embodiment of the controller 200. The controller200 may be implemented as a system controller, a dedicated hardwarecircuit, an appropriately programmed general purpose computer, or anyother equivalent electronic, mechanical or electro-mechanical device.

The controller 200 comprises a processor 210, such as one or more Intel®Pentium® processors. The processor 210 is in communication with acommunication port 220 through which the processor communicates withother devices. The processor 210 is also in communication with a storagedevice 230. The storage device 230 comprises an appropriate combinationof magnetic, optical and/or semiconductor memory, and may include, forexample, Random Access Memory (RAM), Read-Only Memory (ROM), a compactdisc and/or a hard disk. The processor 210 and the storage device 230may each be, for example: (i) located entirely within a single computeror other computing device; or (ii) connected to each other by a remotecommunication medium, such as a serial port cable, telephone line orradio frequency transceiver. In one embodiment, the controller 200 maycomprise one or more computers that are connected to a remote servercomputer for maintaining databases.

The storage device 230 stores a program 240 for controlling theprocessor 210. The processor 210 performs instructions of the program240, and thereby operates in accordance with the present invention, andparticularly in accordance with the methods described in detail herein.The program 240 may be stored in a compressed, uncompiled and/orencrypted format. The program 240 furthermore includes program elementsthat may be necessary, such as an operating system, a databasemanagement system and “device drivers” for allowing the processor 210 tointerface with computer peripheral devices. Appropriate program elementsare known to those skilled in the art, and need not be described indetail herein.

According to an embodiment of the present invention, the instructions ofthe program 240 may be read into a main memory from anothercomputer-readable medium, such from a ROM to RAM. Execution of sequencesof the instructions in program 240 causes processor 210 to perform theprocess steps described herein. In other embodiments, hard-wiredcircuitry may be used in place of, or in combination with, softwareinstructions for implementation of the processes of the presentinvention. Thus, embodiments of the present invention are not limited toany specific combination of hardware and software.

In the embodiment depicted in FIG. 2, the storage device 230 also stores(i) a product database 300, (ii) a customer database 400, (iii) anavailable subscription database 500, (iv) an active subscriptiondatabase 600, (v) a settlement database 700, (vi) a subsidy database800, (vii) a penalty database 900, and (viii) a modification database1000. The databases 300-1000 are described in more detail below and aredepicted with exemplary entries in the accompanying figures. As will bedescribed in more detail below, some or all of the information containedin the databases 300-1000 may be stored in storage devices associatedwith the customer devices 110, 120 and 130 and/or the retail devices140, 150, and 160.

Databases

Reference will now be made to FIGS. 3-10 which include tabularrepresentations of the databases 300-1000, respectively. Each of thetabular representations of databases include a number of example recordsor entries, each of which includes one or more fields. Each of thedepicted fields has a field name. In referring to the tabularrepresentations, reference to specific fields will be made using thefield name and the corresponding field element number. Those skilled inthe art will recognize that any number of records or fields may beprovided.

As will be understood by those skilled in the art, the schematicillustrations and accompanying descriptions of the databases presentedherein are exemplary arrangements for stored representations ofinformation. A number of other arrangements may be employed besidesthose suggested by the tables shown. Similarly, the illustrated entriesof the databases represent exemplary information only; those skilled inthe art will understand that the number and content of the entries canbe different from those illustrated herein.

Product Database

Reference is now made to FIG. 3, which is a tabular representation ofthe product database 300. Each example record or entry of the productdatabase 300 defines a specific product for which a subscription isavailable. This database may be established by the controller 200, byretailers, and/or by manufacturers. In general, the product database 300contains information used to identify and describe products for whichsubscriptions are available or for which subscriptions may beestablished using embodiments of the present invention. The term“product” is used herein to generically refer to goods, products,services or other items that are purchased or consumed.

The tabular representation of the product database 300 includes a numberof fields which specify (i) a product identifier 302, (ii) a productdescription 304, and (iii) a retail price 306. For each entry of theproduct database 300, the product identifier 302 may be established bythe controller 200 or may be automatically assigned by the controller200 as new products or sets of products are identified as available forsubscriptions. The product identifier 302 may be a product name or anycode or identifier (such as a Universal Product Code, or “UPC”) suitablefor uniquely identifying a product, a type of product, or a set ofproducts. The product description 304 may be any information used todescribe the product or set of products identified by the productidentifier 302, and the retail price 306 may be any information used tospecify a retail price for that product or set of products identified bythe product identifier 302.

Customer Database

FIG. 4 is a tabular representation of the customer database 400 whichincludes a number of example records or entries each defining a specificcustomer who is currently participating (or has participated) in thesubscription system. In one embodiment, the customer database 400 isestablished and maintained by the controller 200. Information stored inthe customer database 400 is used to identify and track informationabout customers who are establishing or who have establishedsubscriptions using embodiments of the present invention. In oneembodiment, this information is provided by a customer when a customerfirst establishes a subscription.

The tabular representation of the customer database 400 includes anumber of fields for each record or entry, specifying (i) a customeridentifier 402, (ii) customer data 404, (iii) a payment identifier 406,(iv) a set of contact information 408, (v) an active subscriptionidentifier 410, and (vi) a subsidy(s) 412.

For each entry of the customer database 400, the customer identifier 402is used to uniquely identify a particular customer, and may be any codeor identifier associated with the customer or generated by thecontroller 200 that identifies the customer. For example, the customeridentifier may be the customer's name, a credit card or other paymentaccount number, a social security number, a drivers license number, atelephone number, a frequent shopper card number, biometric informationassociated with the customer, or any other code or identifier which maybe used to uniquely identify the customer. The payment identifier 406 isused to identify a payment account which the customer provides for usein paying amounts or receiving credits associated with subscriptions.For example, in one embodiment, the customer may pay the controller 200(or an entity operating the controller 200) for a subscription using thepayment account identified by the payment identifier 406. In otherembodiments, this information is used to pay a retailer and/or a productmanufacturer. Further, in some embodiments, the payment accountidentified by the payment identifier 406 is charged for penalties leviedagainst the customer. In some embodiments, the payment identifier 406 isused to make payments to the customer, e.g., where the customer hasearned a refund or credit.

For each entry of the customer database 400, the customer data 404 maybe, e.g., a customer name or any other information used to identify aparticular customer. Customer contact information is specified incontact information 408, and may include, for example, a customeraddress, telephone number, and/or electronic address.

For each entry of the customer database 400, the active subscriptionidentifier 410 is used to identify any subscription(s) entered into bythe customer identified by the associated customer identifier 402. Thesubsidy(s) 412 is used to identify any subsidy(s) associated with thecustomer identified by the associated customer identifier 402. In someembodiments, as will be discussed further below, customers may receivesubsidy amounts in conjunction with certain subscriptions. These subsidyamounts may be provided based on a number of different criteria or willbe discussed below.

Available Subscription Database

FIG. 5 is a tabular representation of the available subscriptiondatabase 500 which includes a number of example records or entries eachdefining the terms and details of a subscription which is available. Inone embodiment, the data for the available subscription database 500 isgenerated by retailers who offer subscriptions to products. For example,a retailer may choose to define specific terms of an availablesubscription and submit those terms to controller 200 for inclusion inthe available subscription database 500. This allows the controller 200to search for an available subscription that may meet a customer'sneeds. As will be discussed in more detail below, in some embodiments,new subscriptions may be created based on available subscriptions orthey may be created based on information provided by the customer,retailers, and manufacturers or other parties.

The tabular representation of the database 500 also defines a number offields for each record, specifying (i) a retailer 502, (ii) an availablesubscription identifier 504, (iii) a product identifier 506, (iv) asubscription price 508, (v) a frequency 510, (vi) a duration 512, (vii)a penalty 514, (viii) a modification 516, and (ix) a deposit amount 518.

For each entry of the available subscription database 500, the retailer502 is data identifying a particular retailer offering a particularsubscription. The retailer 502 may be data identifying a retail chain orit may be data specifying a particular store or group of stores.Further, the retailer 502 may be data identifying a manufacturer orother entity which allows customers to purchase subscription productsaccording to the present invention. The data specified by the availablesubscription identifier 504 identifies a particular subscription offeredby the retailer 502. The available subscription identifier 504 may be aunique number or code assigned to the subscription by the controller 200or it may be an identifier selected or generated by the retailer.

The product identifier 506 identifies a particular product offered in asubscription identified by the available subscription identifier 504.The product identifier 506 may be the same as, or related to, productidentifier 302 of FIG. 3. The product identifier 506 may identify asingle, specific product, a product category, or a group of products. Anexample of a product category is “CEREAL,” or “SOFT DRINKS.” Products inthe “SOFT DRINK” category may include specific brands of soft drinks. Agroup of products may be any group of more than one product. A group ofproducts may be formed from unrelated products.

For each entry of the available subscription database 500, thesubscription price 508 identifies a specific price or price range foreach subscription product in a subscription identified by the availablesubscription identifier 504. The subscription price 508 may beidentified, for example, by a set dollar amount, a range of prices,and/or a percentage of a price such as the retail price of the productidentified by corresponding product identifier 506. Retailers may useany of a number of ways to define the subscription price 508 for anavailable subscription. For example, in one embodiment, the subscriptionprice 508 is a fixed price per unit of the subscription productidentified by the product identifier 506. Further, the retailer mayestablish a subscription price 508 that varies during the term of asubscription. For example, the subscription price may decreaseprogressively per unit of product purchased during the term of asubscription. The subscription price 508 may be the lowest retail priceon the subscription product that occurs during the term of thesubscription. Further still, the subscription price 508 may be aninitial retail price that is “locked in” for a customer so that theprice doesn't change despite fluctuations in the retail price of theproduct.

Embodiments of the present invention also permit a retailer to defineavailable subscriptions in a manner that allows a customer to pay adifferent price per unit of a subscription. Other pricing arrangementsare also possible using techniques of the present invention. Some ofthese arrangements will be described in more detail below in conjunctionwith the description of the active subscription database 600.

For each entry of the available subscription database 500, a frequency510 identifies the frequency of an available subscription identified bythe available subscription identifier 504. For example, a retailer mayrequire that, for a certain subscription, individual products bepurchased on a weekly or monthly basis. The duration 512 identifies aduration of the subscription identified by the available subscriptionidentifier 504. Information regarding penalty(s) that are associatedwith a particular subscription is specified by the penalty(s) 514. Inthe depicted embodiment, the penalty(s) associated with a subscriptionare defined by reference to penalty terms which are defined in thepenalty database 900 (described further in conjunction with FIG. 9). Amodification 516 is also shown in the tabular representation of theavailable subscription database 500. The modification 516 containsinformation about whether, and in what circumstances, modifications tothe terms of a subscription may be made. The deposit amount 518identifies whether a deposit amount must be paid by a customer signingup for the subscription, and if so, the value of the required depositamount for a particular subscription identified by the availablesubscription identifier 504.

Active Subscription Database

Referring now to FIGS. 6A and 6B, a tabular representation of the activesubscription database 600 is shown which includes a number of examplerecords or entries each defining an active subscription which has beenestablished. The active subscription database 600 is established andmaintained by controller 200 using data provided by retailers,manufacturers and customers. The data for each record in the activesubscription database 600 defines an active subscription that has beenestablished for a particular customer. The active subscription includesinformation identifying the customer as well as terms and conditions ofthe active subscription. The terms and conditions of an activesubscription may be established by the controller 200, the retailer, themanufacturer, the customer, or any combination of the parties when acustomer establishes a subscription. Certain fields of the activesubscriptions database 600 may be directly derived from the availablesubscription database 500, e.g., where the terms of an availablesubscription meet the needs of a particular customer.

The tabular representation of the active subscription database 600defines fields for each of the entries or records, specifying (i) aredemption identifier 602, (ii) a customer identifier 604, (iii) asubscription product 606, (iv) a subscription price 608, (v) a frequency610, (vi) a retailer 612, (vii) a start date 614, (viii) an end date616, (ix) a date of last redemption 618, (x) a quantity remaining 620,(xi) a penalty 622, and (xii) a status 624.

For each entry of the active subscription database 600, the dataspecified by the redemption identifier 602 is used to access or identifythe details of a particular subscription established by the system for aparticular customer. The redemption identifier 602 may be a uniquenumber or code generated by the controller 200 or another entity touniquely identify a particular subscription as associated with aparticular customer. In some embodiments, the redemption identifier 602is formed from information which identifies terms of a particularsubscription. For example, the redemption identifier 602 may include aretailer identifier, a product identifier, a subscription price, and aunique number identifying a particular subscription. The redemptionidentifier 602 may be, for example, a sixteen digit number that includesa four digit retailer identifier, a four digit product identifier, afour digit subscription price, and a four digit number identifying aparticular subscription. A customer uses this redemption identifier 602to identify the active subscription established for the customer.

The subscription may be associated with a particular customer identifiedby customer identifier 604. In other embodiments, a customer may remainanonymous. The customer identifier 604 may be the same as, or relatedto, the customer identifier 402 of FIG. 4.

Data specified by the subscription product 606 identifies the particularproduct which is the subject of the subscription identified by theredemption identifier 602. The subscription product may be identified bya number or code such as the product identifier 302 of FIG. 3. Thesubscription product 606 may specify varying levels of product details.For example, a product may be identified by brand and size, or productcode, or it may simply be specified by product category or group. Insome embodiments, the subscription product 606 may initially benon-brand specific, but become brand-specific once the customeractivates the subscription by redeeming a first subscription product ofa particular brand. Further, in some embodiments, customers mayestablish subscriptions to any product sold by a retailer (i.e., thesubscription product 606 is broadly defined as any product sold by theretailer). In other embodiments, the subscription product 606 is a groupof products. Where the subscription product 606 is a group of productsor any product at a retailer, the retailer may be allowed to choosespecific products from the group each week to move slow inventory.

In yet another embodiment, the subscription product 606 may beundefined. Instead, the customer may simply establish a subscription toall products at a retailer and commit to spend at least a certain amount(the subscription price 608) at the retailer on a regular basis (thefrequency 610). In other embodiments, the subscription product 606 maybe defined based on the occurrence or non-occurrence of otherconditions. For example, the customer may subscribe to a fruit of theweek at a retailer, and the retailer may be able to select the fruit(e.g., based on availability, etc.).

Data specified by the subscription price 608 is also included for eachsubscription and may be, for example, the price, per unit of thesubscription product, agreed-upon between the controller 200 and thecustomer as discussed below. The subscription price 608 may be the sameas the subscription price 508 of the available subscription database 500(FIG. 5). In some embodiments, the subscription price is negotiated orotherwise defined by agreement with the customer. The subscription price608 may be defined in a number of ways. For example, the subscriptionprice 608 may be: a fixed dollar amount less than the retail price, apercentage of the retail price, an amount that decreases with eachredemption, an amount that increases with each redemption, an amountequal to the lowest retail price of the product during the term of thesubscription, an amount that decreases as time passes, etc.

Further, the subscription price 608 may be defined in a manner thatallows a customer to pay a different price per unit of a subscription.For example, a customer may pay a different price per gallon of milk ina milk subscription, so long as the total amount paid for thesubscription equals an agreed-to amount. For example, the activesubscription database 600 may define a total subscription price (notshown) for a subscription. If the total subscription price for a milksubscription is $50.00 for twenty five gallons of milk, the system mayallow the customer to pay $1.00 per gallon for the first twenty gallonsand $6.00 per gallon for the final five gallons (or any othercombination which equals the total price of $50.00). Alternatively, orin addition, the subscription price 608 may be established as a variableprice. For example, the subscription price 608 that is established for aparticular subscription may be defined as “20% LESS THAN THE RETAILPRICE”. This value may vary as the retail price fluctuates.

The subscription price 608 (as well as other subscription terms) maydepend on other factors as well. For example, the subscription price 608may vary based on factors such as the frequency and duration of thesubscription (e.g., the price may be lower for a subscription redeemedfrequently and for a long period of time), the quantity of thesubscription product, etc. The subscription price 608 may also depend onother subscriptions which have been established for a particularcustomer. For example, the loyalty of a customer who has establishedmany subscriptions with a particular retailer may be rewarded by givingthat customer a further reduced subscription price 608. As anotherexample, a customer who establishes multiple active subscriptions withthe same retailer may receive a discount or other benefit. A customermay also receive a reduced subscription price 608 (or other favorableterms) if the customer establishes subscriptions at cooperatingretailers or manufacturers. Those skilled in the art will recognize thatother pricing schemes may be used according to embodiments of thepresent invention.

The frequency 610 includes data specifying a frequency term associatedwith the subscription identified by the redemption identifier 602. Thefrequency is a term established between the controller 200, thecustomer, and/or the retailer that specifies the frequency with which acustomer must redeem subscription products to stay in compliance withthe terms of the subscription. The frequency 610 may be dictated byfrequency terms specified by the retailer in the available subscriptiondatabase 500. Data specified by the retailer 612 identifies one or moreretailers at which the subscription may be redeemed by the customer. Theretailer 612 may be established at the time of purchasing thesubscription or it may be established at a later time (e.g., it may beestablished when the customer first redeems the subscription).

A start date and an end date of the subscription are specified by datain fields 614 and 616, respectively. These dates are used to specify thebeginning and expiration of the subscription and may be used, forexample, to track whether the subscription is valid. The subscriptionstart date 614 may be any of a number of dates, including the date thesubscription is established, the date the customer first redeems asubscription product, and/or the date that a condition is fulfilled(e.g., the birth of a child, the date that the outside temperatureexceeds 80° F., the date that baseball season starts, etc.). Thesubscription end date 616 may also be any of a number of dates,including: a date at the end of an agreed-upon subscription term, and adate that an agreed-upon event occurs (e.g., a child's birthday, thedate that the outside temperature first falls below 32° F., the datethat the baseball season ends, etc.). In some embodiments, asubscription may have an indefinite end date 616 and/or an unspecifiedstart date 614.

A date of last redemption 618 is used, for example, to track whether thecustomer is redeeming subscription products with the requisite frequency(i.e., according to the frequency specified in field 610). Dataspecified by the quantity remaining 620 tracks the quantity ofsubscription products that remain unredeemed as of the date of lastredemption 618.

Data specified by the penalty 622 identifies whether one or morepenalties have been assessed to the particular subscription identifiedby the redemption identifier 602. In the depicted embodiment, thepenalty 622 is defined by reference to the penalty database 900. As willbe discussed further below, a penalty may be assessed if a customerviolates one or more terms of the subscription. Data specified by thestatus 624 may be used to indicate a status of the subscriptionidentified by the redemption identifier 602. For example, a particularsubscription may be tagged as being “INVALID” once the end date 616 haspassed or after the quantity remaining 620 is equal to zero.

Other data may also be specified in the active subscription database600. For example, data regarding a required payment type may also bespecified for a given active subscription. In some embodiments, anactive subscription may be financial account specific and require thatthe customer use the specified amount (e.g., identified by a specifiedcredit or debit card) each time the customer makes a subscriptionpurchase. In some embodiments, customers are encouraged to establishmultiple subscriptions using the same financial account. The issuer ofthe financial account may subsidize subscriptions that require paymentusing a specified financial account (e.g., a credit card issued by aparticular financial institution).

The active subscription database 600 may also specify specific dates ortimes on which the customer must redeem subscription products. Thisallows a retailer to directly influence customer traffic flow.

In some embodiments, terms of a subscription may be changed based on thesettlement term (discussed further below). For example, the controller200 may lower a subscription price 608 if the controller 200 willreceive a high settlement price for the subscription.

Settlement Database

Reference is now made to FIG. 7, which is a tabular representation ofthe settlement database 700 which includes a number of example recordsor entries each defining terms and procedures used to settle amountsowed between parties (e.g., between the controller 200, retailers,and/or manufacturers). In some embodiments, the settlement database 700may be maintained and controlled by the controller 200, although thedatabase 700 may be maintained and/or controlled by other entities aswell. For example, settlement may be performed by a payment network orother entity that operates to move funds and data between parties. Thesettlement database 700 contains data and information used to facilitatesettlement of funds owed between parties in the subscription system ofthe present invention. Settlement may occur between, for example, thecontroller 200, manufacturers, and retailers. The settlement database700 is referenced when settlement is performed.

The tabular representation of the settlement database 700 defines fieldsfor each of the entries or records, which specify (i) a settled party702, (ii) a settlement price 704, (iii) a settlement schedule 706, and(iv) a commission fee paid to central system 708.

For each entry of the settlement database 700, the data specified by thesettled party 702 specifies a party with which the controller 200 hasestablished a settlement relationship. The settled party 702 is, forexample, a participating retailer or manufacturer. The data specified bythe settlement price 704 identifies the price term by which thecontroller 200 agrees to reimburse the settled party 702. For example,in embodiments where the customer pays the subscription price to thecontroller 200, the controller 200 may later settle with a retailer bypaying the retailer an agreed upon settlement price for the subscription(e.g., the retail price minus a commission fee). In embodiments wherethe customer pays the subscription price directly to a retailer, thecontroller 200 may settle with the retailer by paying the retailer thesettlement price (e.g., the difference between the retail price and thesubscription price or some other agreed-to amount). In some embodiments,the retailer may agree to pay the controller 200 a commission fee 708for each subscription or an amount each time a subscription product isredeemed.

The settlement database 700 may specify terms under which the controller200 settles with other parties as well. For example, the controller 200may pay, or receive payment from, a product manufacturer (e.g., themanufacturer may agree to pay the controller 200 a commission fee 708for each subscription including one of the manufacturer's products)and/or a financial institution (e.g., the financial institution mayagree to pay the controller 200 a set fee for each subscription whichrequires the use of a credit card issued by the financial institution).

The settlement database 700 may further specify terms by which thecontroller 200 facilitates settlement between other parties. Forexample, the controller 200 may facilitate settlement between retailers,manufacturers and other parties, such as financial institutions. In someembodiments, a manufacturer may pay a retailer an agreed-to amount forsupporting or providing manufacturer-specific subscriptions. In otherembodiments, a credit card issuing bank may pay the retailer ormanufacturer an agreed-upon commission fee 708 for supportingsubscriptions using the issuing bank's cards or for providing otherpromotional support.

In some embodiments, the settlement price 704 may depend on the terms ofa particular subscription. For example, the settlement price 704 may behigher for subscriptions having longer durations or larger amounts ofsubscription products. In other embodiments, the settlement price 704may include funds collected from penalties imposed on customers. As willbecome apparent upon reading this disclosure, other settlement terms andprocedures may also be established.

For each entry of the settlement database 700, the data specified by thesettlement schedule 706 identifies the timing of settlement between thecentral system and the settled party 702. A wide variety of settlementschedule terms may be specified, e.g., at redemption, on an establishedperiodic basis, at the end of the subscription, etc. The data specifiedby the commission fee 708 identifies a fee (if any) to be paid to thecentral system and agreed to by the settled party 702. A wide variety offee arrangements may be used in embodiments of the present invention.For example, in one embodiment, the settlement terms may depend on aparticular customer (e.g., a manufacturer may pay a larger fee for acustomer who frequently purchases subscriptions to the manufacturer'sproducts).

Subsidy Database

Referring now to FIG. 8, a tabular representation of the subsidydatabase 800 is shown, which includes a number of example records orentries each defining a subsidy and details of the subsidy which may beoffered to a customer. In some embodiments of the present invention, thesubsidy database 800 is maintained and controlled by the controller 200,although the subsidy database 800 may be maintained and/or controlled byother parties as well. The subsidy database 800 includes data andinformation used to define different subsidy offers which may bepresented to customers who establish subscriptions using the presentinvention. Subsidies can be targeted to specific customers or customerswho meet certain criteria. For example, larger subsidy amounts may bepresented to customers who have established many subscriptions in thepast. The subsidy database 800 may also include data and informationused to define different subsidy offers which are valid for specificproducts. Data for the subsidy database 800 may be provided fromdifferent parties offering subsidies. According to certain embodimentsof the present invention, the subsidy database 800 is referenced when acustomer establishes a subscription to a product for which a subsidy isoffered.

The tabular representation of the subsidy database 800 defines fieldsfor each of the entries or records and specifies (i) a subsidyidentifier 802, (ii) a subsidy provider 804, (iii) an obligation 806,and (iv) a subsidy amount 808.

For each entry of the subsidy database 800, the data specified by thesubsidy identifier 802 identifies a particular subsidy. The subsidyidentifier 802 may be, e.g., a unique number or code used to uniquelyidentify a particular subsidy. Data specified by the subsidy provider804 is used to identify the provider of the subsidy identified by thesubsidy identifier 802. Data specified by the obligation 806 identifiesone or more obligations that must be met by a customer for the customerto qualify for the subsidy in the amount specified by the subsidy amount808.

Penalty Database

FIG. 9 is a tabular representation of the penalty database 900 whichincludes a number of example records or entries each defining aparticular penalty which may be levied against certain customers whofail to comply with term(s) of a subscription. According to certainembodiments of the present invention, the penalty database 900 ismaintained and controlled by the controller 200, although other entitiesmay also maintain and/or control the database 900 as well. The penaltydatabase 900 contains data and information defining different penaltiesand conditions under which those penalties may be imposed on a customer.These penalties and conditions may be established by the controller 200,a retailer, a manufacturer or a combination of those entities.

The tabular representation of the penalty database 900 defines fieldsfor each of the entries or records. The fields specify (i) a penaltycode 902, (ii) a penalty description 904, and (iii) a penaltycondition(s) 906. For each entry of the database 900, the data specifiedby the penalty code 902 includes information identifying a particularpenalty that may be levied against a customer. For example, a customermay incur a penalty for violating one or more terms of a subscription,such as a failure to comply with terms specifying (i) the subscriptionproduct 606, (ii) the subscription price 608, (iii) the frequency 610,(iv) the retailer 612, (v) the start date 614, or (vi) the end date 616.Further, in certain embodiments, a customer may incur a penalty forfailing to use an agreed-upon payment card.

A description of the penalty associated with the penalty code 902 isspecified in the penalty description 904, and condition(s) associatedwith the penalty are set forth in condition(s) 906. The penalty may beany of a number of types of penalties, such as (i) the loss of somebenefit the customer would have otherwise been entitled to if thesubscription were fully complied with (e.g., a low subscription price),(ii) the loss of benefits related to a subscription (e.g., frequentshopper club benefits), (iii) termination of the subscription, (iv)increasing the subscription price, or (v) a financial penalty leviedagainst the customer (e.g., charging a predefined fine amount to acustomer). Further, the penalty may be a reduction or change in terms ofthe subscription. For example, if the subscription price is one thatdecreases progressively per unit of product purchased, the penalty mayinvolve (i) resetting the subscription price to be equal to the retailprice of the subscription product, (ii) causing the subscription priceto remain at a set price without decreasing for a period, or (iii)increasing the subscription price by an amount.

In some embodiments, financial penalties are levied against a customerby charging an amount to the customer's payment account (identified bythe payment identifier 406 stored in the customer database 400 of FIG.4). In other embodiments, financial penalties are levied by keeping someor all of the deposit amount 518 (FIG. 5) paid by the customer. Thepenalty amount can be determined in any of a number of different ways,e.g., by penalizing the customer an amount equal to the amount ofdiscounts the customer received with respect to a given subscription.The penalty amount can be calculated in other ways as well. For example,the penalty amount may be calculated based on (i) the subscriptionprice, (ii) the retail price of the subscription product at the end ofthe subscription, (iii) the average, lowest, or highest retail price ofthe subscription product during the subscription, and (iv) a priceagreed-upon by the customer and the controller 200.

In some embodiments, the penalty associated with the penalty code 902may involve withholding an amount from the customer until the customerfulfills the terms of the subscription. The amount withheld may beobtained from the customer upfront (e.g, the deposit amount 518 of FIG.5) or may be collected during the course of the subscription. At the endof the subscription period, if no penalty is assessed, the customer willreceive the total amount withheld. If the customer violates one or moreterms of the subscription agreement, the amount may be kept by thecontroller 200 and/or retailer.

In some embodiments, the customer is given the opportunity to cure aviolation before being penalized. For example, in some embodiments, acustomer who misses a redemption may be given an extension of timeduring which to fulfill the conditions of the subscription.

In some embodiments, the penalty database 900 may also include a penaltycode 902, penalty description 904, and penalty condition(s) 906 whichapply to a retailer. For example, the penalty conditions 906 may specifythat the retailer will be penalized for hindering or preventing acustomer from fulfilling his subscription (e.g., if the retailer runsout of the product). The retailer may be required to offer the customera further discount on the product, or provide the customer with a couponor rain check. Further, the customer may be allowed to redeem thesubscription product at a different retailer or to exchange it for adifferent product. This ensures that customers are not penalized forstocking or supply problems of the retailer.

Those skilled in the art will recognize that other penalty arrangementsmay be used in embodiments of the present invention.

Modification Database

FIG. 10 is a tabular representation of the modification database 1000which includes a number of example records or entries each defining theterms associated with a particular modification request which may bereceived concerning subscriptions established using the presentinvention. In one embodiment, the database 1000 includes a number ofdifferent types of modifications which may be permitted for differentsubscriptions. In generating an active subscription, one or more of thetypes of modifications may be specified as available for the activesubscription. The listing of types of modifications in database 1000 maynot be exhaustive. Customers and retailers may agree to differentmodification terms when establishing active subscriptions.

Each record or entry of the modification database 1000 includes a numberof fields which specify (i) a modification request 1002, (ii) amodification rule 1004, and (iii) a modification penalty 1006. For eachentry of the database 1000, the data specified by the modificationrequest 1002 identifies a particular type of modification request thatmay be made by, e.g., a customer or retailer participating in thesystem. For example, a customer having a subscription may request thatthe duration of an established subscription be extended or shortened(i.e., a request to enter “EXTEND DURATION,” or “SHORTEN DURATION”). Awide variety of types of modifications may be included in themodification request 1002 of the database 1000. Each modificationrequest 1002 may have an associated modification rule 1004 (e.g.,conditions on the frequency or timing of a particular request) and anassociated modification penalty 1006 (e.g., a fee to be charged for themodification, etc.).

In some embodiments, customers may be allowed to request a “TRANSFER” ofthe subscription to another customer. For example, an existing customerwho currently has a one-year subscription to bananas may decide afterfour months that he no longer wishes to maintain the subscription. Ifthe modification database 1000 indicates that a “TRANSFER” is anacceptable modification, the customer may find another individual totransfer the subscription to. In some embodiments, a subscriptionexchange or other forum may be established by the controller 200 tofacilitate the identification of such transferees. In some embodiments,the “TRANSFER” may simply entail transferring the terms of thesubscription to the new customer. In other embodiments, the transfer mayrequire the transfer of funds such as an initial deposit (or portion ofthe deposit) to the new customer. In some embodiments, a “TRANSFER” maybe used to replicate the terms of an active subscription for one or morenew customers.

In other embodiments, customers may be allowed to request a “ROLLOVER”of the subscription to a new subscription product. For example, if acustomer establishes a one-year subscription to “HAMBURGER” andthereafter decides to become a vegetarian, the customer may be allowedto modify the subscription by changing it into a subscription to “SOYBURGERS.” In some embodiments, the customer may be required to pay amodification penalty 1006 for this modification.

In other embodiments, customers or the retailer may be allowed to“TERMINATE” a subscription. For example, a customer may be allowed toprematurely end a subscription due to changed circumstances. Again, thismay require the payment of a modification penalty 1006 for thetermination. Similarly, a retailer may be permitted to “TERMINATE” asubscription due to changed circumstances such as the unavailability ofthe subscription product. The retailer may be subject to a modificationpenalty 1006 or be required to refund some or all of the customer'smoney or provide an acceptable substitute.

Process Description

Process Overview

A process of the present invention will now be described to illustratehow subscriptions may be established and redeemed and how parties maysettle funds among one another. Referring to FIG. 11, a flow chart 1100represents a process according to an embodiment of the present inventionthat may be performed by the controller 200 in conjunction with acustomer device 110 and a retailer device 140 (FIG. 1). The particulararrangement of elements in the flow chart of FIG. 11, as well as theother flow charts discussed herein, is not meant to imply a fixed orderto the steps; rather, embodiments of the present invention can bepracticed in any order that is practicable.

According to an embodiment of the present invention, the subscriptionmanagement process 1100 begins with the establishment of a subscriptionand arranging for fulfillment of the subscription (at 1200). A customer,or group of customers, establishes a subscription by communicating withthe controller 200 and by selecting and negotiating terms of asubscription for a product or set of products. In some embodiments,customers may select subscriptions to products based on retailer,manufacturer, product, and/or product category. Terms of a subscriptionmay be set by the retailer or manufacturer, or some or all of the termsmay be negotiated by the customer. Once a subscription is established,the system operates to arrange for fulfillment. This can be performed ina number of ways. For example, the controller 200 may forward detailsregarding a particular subscription to a retailer so the retailer hasthose details before the customer arrives to redeem the subscription. Asan alternative example, the controller 200 does not communicatesubscription information to retailers; instead, the customer may begiven subscription identifying information which the customer presentsto the retailer at the time of purchasing a subscription product. Theretailer then contacts the controller 200 for authorization of thepurchase transaction. Other techniques for arranging fulfillment willbecome apparent upon reading this disclosure. A further discussion ofthe establishment of a subscription and arranging for fulfillment isprovided in conjunction with FIG. 12.

Once a subscription has been established, processing continues to afulfillment process 1300. As will be discussed in further detail belowin conjunction with FIG. 13, the fulfillment process 1300 may beperformed in a number of different ways. For example, in acontroller-based embodiment, the controller 200 performs the function oftracking and authorizing subscription fulfillment by receiving anauthorization inquiry from participating retailers for each subscriptionredemption request. In a retailer-based embodiment, the retailer device140 performs some or all of the function of tracking fulfillment bytracking individual transactions involving subscriptions redeemed atthat retailer. Further, in a customer-based embodiment, the customerdevice 110 performs some or all of the function of tracking fulfillmentby tracking individual redemption transactions of a particular customer.

The subscription process 1100 also includes a settlement process 1400.Settlement 1400 will be described in more detail below in connectionwith FIG. 14, and may take several forms and involve several differentparties. For example, the controller 200 may agree with retailers andmanufacturers to reimburse the retailers and manufacturers for fees andcosts associated with participating subscriptions. Settlement 1400between parties may be performed on a periodic or otherwise agreed-tobasis.

The result is a system which allows customers to purchase subscriptionsto products from a large number of retailers. Embodiments of the presentinvention provide an efficient and centralized system for theestablishment, fulfillment, and settlement of subscriptions amongmultiple customers and retailers.

Subscription and Arranging Fulfillment Process

One embodiment of a process 1200 for establishing a subscription andarranging fulfillment is described by referring now to FIG. 12. Theprocess 1200 typically begins with the receipt, by the controller 200,of a request to establish a subscription at 1202. The request may begenerated by a prospective customer operating a customer device 110 incommunication with the controller 200. Alternatively, a customer maycommunicate with the controller 200 via a point of sale device (such asthe retailer device 140) located at a retailer location.

Upon receipt of the request to establish a subscription, a determinationis made whether the customer is a new customer (at 1204). If so,processing proceeds to 1206 where customer information is received. Thisinformation may be received by the controller 200 in a variety ofmanners. For example, in an Internet Web-based environment, the customermay be prompted to provide information, and information may be receivedby the controller 200, using electronic forms or other well-knowntechniques. As another example, the customer may establish asubscription using a telephone and interact with the controller 200 viaan interactive voice response unit (IVRU). Further, the customer mayestablish a subscription using traditional mail or electronic mail.

The controller 200, upon receipt of the customer information, willgenerate or assign a customer identifier at 1208. This customeridentifier and the customer information are stored at 1210. As anexample, illustrated by reference to the customer database 400 of FIG.4, the customer information received at 1206 includes the customer data404 (e.g., the customer's name), the payment identifier 406 (e.g., acredit card number), and the contact information 408 (e.g., thecustomer's address). The customer identifier 402, as depicted in thefirst record of the customer database 400, may be the same as thepayment identifier 406. Alternatively, or in addition, the customeridentifier 402 may be a unique number, code or other indicia generatedby the controller 200 for each customer.

If, at 1204, a determination is made that the customer is an existingcustomer, the customer may simply provide an existing customeridentifier 402 (at 1212). The controller 200 then retrieves customerdata (at 1214). In some embodiments, such as Internet-based embodimentswhere the customer uses a Web “browser” to interact with the controller200, the customer identifier 402 may be stored in the customer's browseras a “cookie” so that the customer may be automatically identified tothe controller. In some embodiments, customers who are repeat customersare rewarded. For example, customers may be rewarded with morebeneficial subscription terms based on the number of subscriptions thecustomer has with (i) the controller 200, (ii) each retailer, or (iii)each manufacturer. Further customers may be rewarded for their use of aparticular credit card or financial account.

Once the customer has been identified to the controller 200, processingproceeds to 1216 where the system functions to determine subscriptionterms. This may occur in a number of ways. For example, a customer maycontact controller 200 and browse through a menu or selection ofavailable subscriptions. The customer may also request a specificproduct and construct a new subscription for that product. The customermay also specify one or more desired term(s) of the subscription, suchas a desired price, a desired brand, a desired quantity, etc. Further,the customer may specify certain terms and specify an acceptable rangefor other terms. In some embodiments, the customer may weight desiredterms. For example, the customer may indicate that a desiredsubscription price is the most important term and that the specificretailer is less important. Further, the customer may submit offers formultiple subscriptions and indicate that being able to pick up all ofthe subscription items at a single retailer is the most importantcriteria.

The customer may specify or establish ranges for all of the terms or mayallow the controller 200 to supply certain terms. The controller 200 maythen create or select an appropriate subscription based on thecustomer's request. In some embodiments, the controller 200 may performa screening process to ensure the customer's request meets minimumsubscription requirements established by the controller 200, retailers,and manufacturers.

As an example illustrated by reference to the product database 300 ofFIG. 3 and the available subscription database 500 of FIG. 5, thecustomer may request a subscription to SOFT-brand toilet paper, in4-roll packages (identified in the product database 300 as having aproduct identifier 302 of “P1111”). This product identifier 302 is usedto determine whether any subscriptions are available to that particularproduct. Reference to the available subscriptions database 500 showsthat several retailers offer subscriptions to product “P1111”—“JOE'SSTORE” (under the available subscription identifier 504 “SR1111”) and“SAM'S STORE” (under the available subscription identifier 504“AP1111”). In establishing a request for the subscription, the customermay be presented with several choices. For example, the customer may bepresented with a list of penalties from which to choose. The customer'sselection of penalties and other terms may have a direct impact on thesubscription price or other subscription terms (for example, a customerwho is willing to accept severe penalties may receive a lowersubscription price because that customer is less likely to breach thesubscription agreement).

In one embodiment, the respective terms of these available subscriptionsare retrieved and presented to the customer without modification by thecontroller 200 (e.g., they are determined by the retailer and/ormanufacturer). The customer is then given the opportunity to determinewhether the terms are acceptable at 1218. In other embodiments, theterms of the available subscriptions may be modified by the controller200 before they are presented to the customer. For example, referring toavailable subscription “SR1111” of FIG. 5, the controller 200 may modifythe subscription price 508 and offer the subscription to the customer ata price of $1.25” (per unit of the subscription). This modificationcomplies with the retailer's requirement that the subscription price begreater than or equal to “$0.99” per unit. The controller 200 mayfurther modify the available subscription by specifying that thefrequency be “WEEKLY” for one year. This subscription, as modified bythe controller 200, may then be presented to the customer for approval.

In some embodiments, the controller 200 forwards a customer's request onto one or more retailers, manufacturers, or other entities for theirreview and acceptance. These parties may generate a counter-offer to acustomer's request which may be presented to the customer by thecontroller 200. Customer's may enjoy better subscription terms as aresult of competition between multiple parties.

In some embodiments, the controller 200 and/or the retailer ormanufacturer (via the controller 200) may offer the customer a lowersubscription price if the customer agrees to modify other terms of thesubscription. For example, a retailer may offer a lower subscriptionprice to a customer who agrees to increase the subscription frequency610, the penalty 622, or the duration of the subscription. Further, acustomer may be presented with a subsidy offer which may reduce theprice of the subscription or modify other terms of the subscription. Thesubsidy may be a subsidy defined in, e.g., subsidy database 800 (FIG.8).

Alternatively, or in addition, the customer may be given the opportunityto dictate or modify some or all of the terms of the subscription. Forexample, the customer may specifically request a one year subscription,on a weekly basis, to SOFT-brand toilet paper for a per-unit price of“$1.50”. The controller 200, using this information, determines that atleast two available subscriptions satisfy the customer's request: “JOE'SSTORE's” available subscription number “SR1111” and “SAM'S STORE's”available subscription number “AP1111.” Once the controller 200 and thecustomer have arrived at an agreement regarding the terms and conditionsof the new subscription, processing continues to 1222 where thesubscription is established. In one embodiment, described by referringto FIG. 6, the subscription is established by assigning a redemptionidentifier 602 to a new entry in the active subscription database 600.The terms and conditions of the agreed-upon subscription are associatedwith the redemption identifier 602. As an example, referring to thefirst depicted record of the active subscription database 600, aredemption identifier 602 of “R5555” is used to refer to a subscriptionestablished for customer identifier “234-678-9011” (Ms. Bethany Jonesidentified in the customer database 400) which requires Bethany topurchase SOFT-brand toilet paper (product identifier “P1111”) each weekfor a year at “SAM'S STORE.” In return, Bethany receives thesubscription price of $1.50 per unit of the subscription. In thisexample, no penalty 622 will be imposed if Bethany fails to comply withthe terms of the subscription.

In some embodiments, establishment of a subscription 1222 may leave oneor more terms of the subscription open. For example, in one embodiment,a subscription may be established without final selection of a specificretailer at which the subscription may be redeemed (e.g., the retailer612 of FIG. 6 may be left blank at the end of the process ofestablishing a subscription). In this embodiment, the final selection ofthe retailer may be completed when the customer redeems the firstproduct of a subscription at a participating retailer. As an example, acustomer may establish a subscription that has an undefined retailer612. The customer may be presented with a list of retailers at which thesubscription will be accepted. The customer may then finalize theestablishment of the subscription by redeeming the first product of thesubscription at a participating retailer (that is, a retailer that wason the list provided to the customer and which honors subscriptionsestablished by the controller 200). This allows a customer to select afavorite or most convenient retailer for the subscription.

In some embodiments of the present invention, establishment of asubscription 1222 may require that the customer pay a total subscriptionprice (e.g., the subscription price multiplied by the number of productsin the subscription) to the controller 200 at the time of establishingthe subscription, or each time the customer redeems a subscriptionproduct. In other embodiments, the customer pays the retailer each timethe customer redeems a subscription product. Further, the retailerand/or the customer may agree to pay a fee to the controller 200 forestablishing the subscription.

Once the subscription is established, a redemption identifier iscommunicated to the customer at 1224. This may be performed in any of anumber of ways. For example, the redemption identifier may becommunicated via an IVRU, over the Internet, via mail, etc. Inembodiments where privacy and security are desired, the redemptionidentifier may be encrypted or otherwise encoded in a manner whichprevents unauthorized parties from receiving or using the redemptionidentifier.

In some embodiments, subscription information is also communicated toretailer(s) at 1226. For example, the details of a particularsubscription may be forwarded to the retailer or retailers at which thesubscription will be honored. In other embodiments, the particularretailer(s) are not identified until later in the process and nosubscription information can be forwarded. In still other embodiments,no information need be communicated to the retailer until a retailercontacts the controller 200 to authorize a subscription transaction.

Fulfillment Process

A process 1300 for arranging for the fulfillment of the subscription isdescribed by referring now to FIG. 13. The fulfillment process 1300begins at 1302 where a subscription is identified. A subscription may beidentified, for example, when a customer presents a product for purchaseat, e.g., a retail point of sale. For example, the customer may indicatethat the product is part of a subscription by entering the redemptionidentifier 602 into retailer device 140. Further, the retailer device140 may automatically determine that the product is part of asubscription, for example, by reading a frequent shopper card presentedby the customer. The frequent shopper card may store information thatallows the retrieval or identification of the redemption identifier 602.As a further example, a subscription may be identified by forwardingcustomer information and product information to the controller 200 forauthorization of a transaction. Any of these techniques may be used toidentify a subscription at 1302.

In one embodiment, once the redemption identifier 602 has been presentedto the retailer device 140, the redemption identifier 602 is used toretrieve information about the subscription at 1304. The informationretrieved can include information from active subscription database 600(FIG. 2). In some embodiments, the information is retrieved from thecustomer (e.g., from a frequent shopper card, smart card, or PDA carriedby the customer), from the retailer (e.g., from information stored atthe retailer device regarding the active subscriptions offered by aparticular retailer), and/or from the controller 200.

At 1306 a check is made to determine whether the subscription identifiedby the redemption identifier 602 is still valid. For example, thisdetermination may be made based on retrieving the end date 616 (FIG. 6B)and comparing it with the current date to determine if the subscriptionhas expired. Alternatively, or in addition, the check can involveretrieving information regarding the quantity remaining 620 (FIG. 6B)and determining whether the subscription has any units of productsremaining for redemption. If the subscription is no longer valid,processing may terminate. Alternatively, the customer may be given theoption to renew or reestablish the subscription, e.g., by following theprocedure for establishing a subscription set forth above and describedin conjunction with FIG. 12.

If the check at 1306 ascertains that the subscription is valid,processing continues to 1308 where a determination is made whether thesubscription has been properly presented. For example, this may includeascertaining that the product being purchased by the customer is thesubscription product 606 (FIG. 6A). Further, the identity of theretailer can be compared with the stored information about the retailer612 (FIG. 6A). Other checks may also compare the start date 614 (has thestart date arrived yet?), and the frequency 610 and the date of lastredemption 618 (is the customer redeeming with the appropriatefrequency?). These checks may be conducted locally if the retailerstores information about the subscription. Alternatively, or inaddition, the checks may require that contact with the controller 200 orsome other third party (such as a credit card network) be established.For example, an authorization request may be communicated from theretailer device 140 to the controller 200 transmitting information aboutthe requested transaction. The controller 200 can then perform thechecks to determine if the subscription is valid (at 1306) and if thesubscription is properly presented (at 1308) and respond with anauthorization or a denial of the transaction. In another embodiment, thechecks at 1306 and 1308 may be performed by querying a customer devicesuch as a smart card or frequent shopper card which stores or isassociated with information about the subscription.

If the checks show that the customer is not redeeming the subscriptionproperly (that is, the customer is in violation of one or more terms andconditions of the subscription as defined in active subscriptiondatabase 600), a determination is made at 1310 whether a penalty shouldbe assessed. As an example, if the check at 1308 reveals that thecustomer is not complying with the frequency term of the subscription(as defined by field 610 of FIG. 6) and the penalty code (as defined byfield 622 of FIG. 6 and fields 902-906 of FIG. 9) indicates that apenalty is to be applied for violations of the frequency term, thetransaction may be completed, but only after a penalty has been applied.In this example, the penalty is “RAISE SUBSCRIPTION PRICE $0.05” (asdefined by the penalty description 904 associated with the penalty code“X3”). After assessing the penalty, processing continues to 1312 wherethe transaction is completed. In some embodiments, the transaction willnot be able to be completed, even with a penalty and processingterminates.

In one embodiment, a customer may be given the opportunity to modify theterms of his subscription. Whether a customer may be given theopportunity to modify the subscription may be set forth, e.g., inmodification database 1000 (FIG. 10).

If the checks show that the customer is redeeming the subscriptionproperly (as defined by the terms and conditions of the subscription),processing continues to 1310 where the transaction is completed (i.e.,the customer pays the subscription price 608 (FIG. 6A) and receives thesubscription product 606). In some embodiments, where the customer paidthe subscription price in advance (e.g., during establishment of thesubscription), the customer may not need to pay any amount for thesubscription product at 1310.

The transaction may be completed at 1310 in a number of ways. Forexample, in some embodiments, the retailer may perform a price overrideat a POS terminal to override the retail price for a product and toreflect the subscription price. The price override may also be performedby providing a discount in the amount of the difference between theretail price and the subscription price. This price override may beauthorized locally, or it may be authorized by controller 200 or by athird party such as a credit card processor or payment network. In someembodiments, the transaction is completed at 1310 with the customerpaying the full retail price for the product and later receiving acredit back for the difference between the retail price and thesubscription price. Those skilled in the art, upon reading thisdisclosure, will recognize that other methods and approaches forcompleting the transaction may also be used.

Processing continues to 1312 where the subscription is updated toreflect the transaction. For example, information in the activesubscription database 600 (FIG. 6) is updated to reduce the quantityremaining 620 and to revise the date of last redemption 618. Thisupdating may be performed locally by the retailer device 140 (FIG. 1) orit may involve transmitting update information to the controller 200, tothe customer device 110, or to a customer transaction card or smart card(not shown).

In some embodiments, the fulfillment process 1300 does not involvecommunication between a retailer and controller 200 for eachsubscription transaction. Instead, retailers may communicate informationabout subscriptions to the controller 200 on a periodic basis. Forexample, a retailer may submit subscription information to thecontroller 200 on a nightly basis. Further, in certain embodiments, theretailer may only submit information to the controller 200 after acustomer has completed a subscription.

In other embodiments, the fulfillment process 1300 requires that thecustomer (rather than the retailer) interact with the controller 200.For example, a retailer may give a customer a code or confirmationnumber indicating that the customer has properly redeemed a subscriptionproduct or has successfully completed a subscription. The customer maythen communicate this code or confirmation number to the controller 200to inform the controller 200 of the status of the fulfillment. Thoseskilled in the art, upon reading this disclosure, will recognize thatother fulfillment techniques may also be performed.

Settlement Process

FIG. 14 depicts a process for settlement 1400. According to embodimentsof the present invention, the settlement process 1400 may occur atdifferent times and in different manners. For example, in oneembodiment, the settlement process 1400 occurs one time for eachsubscription at either the beginning or the end of the subscription. Inother embodiments, the settlement process 1400 is performed a number oftimes during the term of a subscription. For example, a retailer may bepaid (or may pay) a fee for each subscription product redeemed.

The terms of settlement are established at 1402. The terms may beestablished when a retailer or manufacturer first establishes arelationship with the controller 200 or otherwise offering servicesaccording to embodiments of the present invention. Settlement termswhich may be established are shown in the settlement database 700 (FIG.7), and may include terms identifying the settled party 702, thesettlement price 704, the settlement schedule 706 and the commission fee(if any) 708. Other terms needed to define a settlement relationship mayalso be established. For example, payment terms may be included if aretailer has specific requirements regarding the form of settlementpayments.

Once the settlement terms for a particular party (e.g., retailer ormanufacturer) are established, processing continues to 1404 where adetermination is made whether the settlement terms have been fulfilled.This may involve, for example, retrieving information about all activesubscriptions (e.g., from active subscription database 600 of FIG. 6)relating to a particular retailer or manufacturer and determiningwhether the status of any active subscriptions requires settlement witha particular retailer or manufacturer. This determination of whetherterms have been fulfilled may be performed on a periodic basis (e.g.,nightly) or may be performed whenever records of the active subscriptiondatabase 600 are updated.

If a determination is made that settlement terms with a particular partyhave been fulfilled, processing continues to 1406 where the settlementprice defined in the settlement database 700 (FIG. 7) is paid. Thisprocess continues as long as the party continues to be a participant inthe system of the present invention. Settlement between other partiesmay also be facilitated by embodiments of the present invention. Forexample, settlement between the controller 200 and a manufacturer may beperformed where the manufacturer has provided a subsidy for asubscription. As a further example, settlement between a retailer or thecontroller 200 and a credit card issuer may also be performed.

Additional Embodiments

The following are several examples that illustrate additionalembodiments of the present invention. These examples do not constitute adefinition of all possible embodiments, and those skilled in the artwill understand that the present invention is applicable to many otherembodiments. Further, although the following examples are brieflydescribed for clarity, those skilled in the art will understand how tomake any changes, if necessary, to the above-described apparatus andmethods to accommodate these and other embodiments and applications.

According to one embodiment of the present invention, a customer maychoose to prepay for the entire subscription. If the customer fails tocomply with any of the terms and conditions of the subscription, he maybe penalized by withholding one or more subscription products, by losingall or a portion of the prepaid amount, etc. In other embodiments, thecustomer may choose to pay for the entire subscription in a lump sumduring the term of the subscription (e.g., after the first product hasbeen redeemed), or at the end of the subscription.

According to another embodiment, retailers may remind customers who havefailed to redeem subscription products. For example, a retailer mayidentify a customer during a check-out transaction (e.g., via thecustomer frequent shopper card) and check to see the status of anysubscriptions held by the customer. If the customer has one or moresubscriptions with the retailer which are delinquent (e.g., one or moresubscription products has not been redeemed). The retailer may remindthe customer that he needs to redeem the items. This reminder may bepresented in a number of ways. For example, a terminal may prompt thecashier to remind the customer or a reminder may be printed on thecustomer's receipt. In other embodiments, customers may be presentedwith other types of reminders to redeem subscription products (e.g.,e-mail or regular mail reminders may be sent).

According to another embodiment of the present invention, customers whorefer new customers to the controller 200 may receive a benefit such asmore favorable subscription terms. For example, the controller 200 maytrack whether a new customer who establishes a subscription was referredby an existing customer. If the new customer is a referral, the existingcustomer may receive a benefit such as a dollar credit toward theexisting customer's next subscription. Those skilled in the art willrecognize that other benefits and incentives may also be provided toencourage existing customers to generate referrals.

According to another embodiment of the present invention, uponestablishing a subscription, the customer may receive a number ofvouchers or coupons for each product in the subscription. The vouchersor coupons may be encoded with information regarding the product, theredemption identifier, and the subscription price. In some embodiments,the customer can pre-pay for the vouchers or coupons. In otherembodiments, the voucher or coupon is used to notify the retailer of thesubscription price that is to be extended to the customer. In someembodiments each voucher or coupon has a specific date or range of datesfor which it is valid. In this manner, the coupons can regulate thefrequency requirement of the subscription (e.g., for a four weeksubscription which is to be redeemed weekly, four coupons dated a weekapart can be issued).

In another embodiment, the customer may be a group of individuals whohave agreed among themselves to jointly establish a subscription (e.g.,to qualify for a larger discount in return for the commitment topurchase a greater quantity of items). As a further embodiment, ratherthan establish a single group subscription, individuals may be able tolink different subscriptions to jointly qualify for greater savings. Themembers of a group need not know each other or shop at the sameretailer. Each member of the group may have separate redemptionidentifiers that are linked at controller 200, or they may each sharethe same redemption identifier. Each of the members of the group maykeep track of the status of subscriptions through, e.g., a Web site, akiosk, or through printed status updates on receipts. In one embodiment,the failure of one member of the group to properly redeem subscriptionitems affects the level of benefits that all members of the groupreceive. Peer pressure from the group should encourage other members toproperly redeem items.

A number of additional ways of establishing a subscription may be used.For example, the customer may operate a portable customer device 110(such as a PDA) and may receive offers for subscriptions, e.g., whileshopping at retail stores. Further, subscription offers may be printedon product packaging as, e.g., a scanable product code. A customer mayinitiate the process for establishing a subscription by presenting theproduct to a cashier and choosing to accept a subscription to theproduct. In one embodiment, the initial product (the product scanned atthe cashier) is the first product of the subscription. Alternatively, orin addition, the subscription can be established by phoning in a codeprinted on product packaging.

In other embodiments, a customer may be given the chance to donate someor all of the benefits associated with a subscription to a third party,such as a charity. For example, a customer may choose to donate hissavings from the subscription (e.g., the difference between thesubscription price and the retail price) to a charity. Further, theterms of a subscription may be defined such that the retailer willdonate products or discounts on products to a charity for eachsubscription established or for each subscription product redeemed. Inanother embodiment, the customer may choose to pay a higher subscriptionprice per subscription product and to have the extra amount paidcredited to a charity or to another customer's subscription.

In other embodiments, a customer may be given the opportunity to changeterms of the subscription. For example, a customer may be able totransfer a subscription to another customer. A customer may also be ableto sell the subscription back to the controller 200 or the retailer bypaying an agreed-upon fee. A customer may also be given the opportunityto, e.g., access a Web site and modify terms of an existingsubscription.

Although the present invention has been described with respect to apreferred embodiment thereof, those skilled in the art will note thatvarious substitutions may be made to those embodiments described hereinwithout departing from the spirit and scope of the present invention.

1. A method comprising: receiving, by a controller device from acustomer, via a web site, information that identifies a product;establishing, by the controller device, a subscription of the customerfor the product, in which terms of the subscription include: asubscription price of the product, and a frequency of the subscriptionthat indicates a period of time, in which in order to comply with thefrequency of the subscription the customer is required to purchase atleast one unit of the product in each of a plurality of the periods oftime; determining, via the controller device, that the customer is incompliance with the frequency of the subscription; authorizing, by thecontroller device, purchase by the customer of a unit of the product atthe subscription price; and tracking, by the controller device,fulfillment of the subscription.
 2. The method of claim 1, wherein thecontroller device is operated by a retailer fulfilling the subscription.3. The method of claim 1, wherein the controller device comprises a webserver.
 4. The method of claim 1, further comprising: prompting thecustomer to provide the information that identifies the product via theweb site.
 5. The method of claim 1, further comprising: prompting thecustomer to provide information about a desired frequency of thesubscription via the web site.
 6. The method of claim 1, furthercomprising: receiving, by the controller device via the web site, anidentifier that identifies the customer.
 7. The method of claim 1,further comprising: allowing the customer to modify one or more terms ofthe subscription via the web site.
 8. The method of claim 1, furthercomprising: receiving, by the controller device via the web site, arequest by the customer to modify the frequency of the subscription; andmodifying the frequency of the subscription in accordance with therequest.
 9. The method of claim 1, wherein the subscription price isless than a retail price of a unit of the product.
 10. The method ofclaim 1, wherein the subscription price comprises a discount off of aretail price of a unit of the product.
 11. The method of claim 1,wherein the subscription price is variable.
 12. The method of claim 1,further comprising: receiving an indication of acceptance of the termsof the subscription by the customer.
 13. An apparatus comprising: aprocessor; and a storage device in communication with the processor, thestorage device storing instructions configured such that when executedby the processor the instructions direct the processor to perform:receiving, via a web site, information that identifies a product;establishing a subscription of the customer for the product, in whichterms of the subscription include: a subscription price of the product,and a frequency of the subscription that indicates a period of time, inwhich in order to comply with the frequency of the subscription thecustomer is required to purchase at least one unit of the product ineach of a plurality of the periods of time; determining that thecustomer is in compliance with the frequency of the subscription;authorizing purchase by the customer of a unit of the product at thesubscription price; and tracking fulfillment of the subscription. 14.The apparatus of claim 13, embodied as a web server.
 15. The apparatusof claim 13, the instructions being further configured such that whenexecuted by the processor the instructions direct the processor toperform: prompting the customer to provide the information thatidentifies the product via the web site.
 16. The apparatus of claim 13,the instructions being further configured such that when executed by theprocessor the instructions direct the processor to perform: promptingthe customer to provide information about a desired frequency of thesubscription via the web site.
 17. The apparatus of claim 13, theinstructions being further configured such that when executed by theprocessor the instructions direct the processor to perform: receiving,via the web site, an identifier that identifies the customer.
 18. Theapparatus of claim 13, the instructions being further configured suchthat when executed by the processor the instructions direct theprocessor to perform: allowing the customer to modify one or more termsof the subscription via the web site.
 19. The apparatus of claim 13, theinstructions being further configured such that when executed by theprocessor the instructions direct the processor to perform: receiving,via the web site, a request by the customer to modify the frequency ofthe subscription; and modifying the frequency of the subscription inaccordance with the request.
 20. The apparatus of claim 13, wherein thesubscription price is less than a retail price of a unit of the product.21. The apparatus of claim 13, wherein the subscription price comprisesa discount off of a retail price of a unit of the product.
 22. Theapparatus of claim 13, wherein the subscription price is variable. 23.The apparatus of claim 13, the instructions being further configuredsuch that when executed by the processor the instructions direct theprocessor to perform: receiving an indication of acceptance of the termsof the subscription by the customer.
 24. A computer readable storagedevice storing instructions configured to direct a controller to performa method, the method comprising: receiving, by a controller device froma customer, via a web site, information that identifies a product;establishing, by the controller device, a subscription of the customerfor the product, in which terms of the subscription include: asubscription price of the product, and a frequency of the subscriptionthat indicates a period of time, in which in order to comply with thefrequency of the subscription the customer is required to purchase atleast one unit of the product in each of a plurality of the periods oftime; determining, via the controller device, that the customer is incompliance with the frequency of the subscription; authorizing, by thecontroller device, purchase by the customer of a unit of the product atthe subscription price; and tracking, by the controller device,fulfillment of the subscription.